The AI revolution with 21st century skills: Implications for the wage inequality and technical change

Rachael Grant and Murat Üngör

Scottish Journal of Political Economy, 2024, vol. 71, issue 5, 731-765

Abstract: We construct a three‐level constant elasticity of substitution production model. Labour is split into three components: (i) low‐skilled labour, (ii) high‐skilled labour with a traditional education background, and (iii) high‐skilled labour with an AI‐based education background. Rising use of automation in production will cause a rise in the skill premium (wages of both types of high‐skilled workers relative to low‐skilled workers) and AI skill premium (wages of high‐skilled labour with an AI‐based education relative to those with a traditional education background). Dependent on the value of the elasticity, automation may favour high‐skilled workers with an AI‐based education background.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/sjpe.12395

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:scotjp:v:71:y:2024:i:5:p:731-765

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().